Existing Home Sales Fall 3.1% In 2014

Mike Blake/Reuters
Existing home sales rose less than expected in December and fell 3.1% overall in 2014.

In December, existing home sales rose by 2.4% to an annualized pace of 5.04 million.

Expectations were for the report to show sales grew 3% in December to an annualized pace of 5.08 million, up from November's pace of 4.93 million, which was a 6.1% decline from October.

For the full year, existing home sales fell 3.1% from 2013, totaling 4.93 million down against 5.09 million last year.

Following the report, Lawrence Yun, chief economist at the National Association of Realtors said, "Home sales improved over the summer once inventory increased, prices moderated and economic growth accelerated. Sales were measurably better in the second half - up 8 percent compared to the first six months of the year."

In December, inventory fell 11.1% to a supply of 4.4 months at the current pace of sales, and Yun said that the drop in supply, "raises some affordability concerns in the months ahead."

Following this report, Ian Shepherdson at Pantheon Macro said, "In one line: Rebound is not a signal of renewed strength."